Pimco’s Kiesel, Other Money Managers Trash Treasurys

A growing list of major investors are expressing disdain for Treasurys, saying the drop of their yields to record lows makes the securities quite unattractive.

You can add Mark Kiesel of Pimco, Don Yacktman of Yacktman Funds, and Meggan Walsh of Invesco to that list. They tell Morningstar’s Investment Conference that the risk for Treasurys is all on the downside.

Bond-fund manager Kiesel noted that long-term Treasurys could shed 12 percent of their value if interest rates rise by 1 percentage point. But the corporate bonds in his portfolio would likely break even, he says.

If you are interested in blue-chip dividend stocks, the market’s recent volatility has sent them to what look like bargain levels for short periods. So you might take advantage of one these downdrafts to jump in and buy.